<p>So from what I understand, any and all outside scholarships are somewhat pointless if you recieved any sort of financial aid at rice. For example, if I recieve 5000 dollars from a corporation scholarship, rice simple cuts out the amount of aid I recieved. I recieved a sizable amount of financial aid, so am I correct in thinking that it's pointless for me to apply for outside scholarships?
Also, let's say I recieved a scholarship next month, would I expected to report it immediately, or how does that work?</p>
<p>You are correct. My S is in the same situation. However I think that outside scholarships can be used to replace loans/work study, but otherwise, you will entirely “lose” your scholarship, but I think you’ll get to pay taxes on it (as income). My S will probably refuse the scholarships he has been awarded or ask if they can buy him a computer or something else instead.</p>
<p>See this page for more info: [Financial</a> Aid at Rice University](<a href=“http://financialaid.rice.edu/main.aspx?id=184]Financial”>http://financialaid.rice.edu/main.aspx?id=184). I don’t think the tax situation is true. If you get an outside scholarship, that money typically goes straight to Rice, not to you, if that makes any sense. In other words, the outside organization writes a check to Rice. It doesn’t ever become an asset of yours. The only way I can see taxes coming into this is if you were somehow being paid to go to school, but at that point Rice will cut your aid completely and I haven’t exactly heard of this happening.</p>
<p>As far as reporting goes, I don’t know if it needs to be immediate, but it does need to happen. As I said earlier, that outside scholarship will be a check to Rice on your behalf, so you can’t hide it from them. If you report it when you receive it you know you won’t forget to do it.</p>
<p>I believe that the checks are made out to Rice AND the student.</p>
<p>Room and board do not count as qualified expenses (in regards to IRS) so when those expenses are covered by the university (in the form of a scholarship - don’t know about grants), that portion becomes taxable, I think. By no means do I have this stuff figured out yet.</p>
<p>My son is a junior at Rice and has both substantial FA and outside scholarships. The outside scholarships did not affect his FA at all. I can’t say it will be the same for all because we fall under the income where loans aren’t part of the FA package, but work study is. His hs senior scholarships checks came both ways- some made out to him and some made out to Rice. That totally depends on the sponsor. We declared all the ones that were made out to him as instructed somewhere in the FA information. He has one continuing scholarship. It is only $1000, but we still declare it and are grateful to receive it.</p>
<p>As far as taxes go, Rice will issue whatever form it needs to. Since it is in the student’s name, your own taxes aren’t affected. My son hasn’t had to pay any taxes because it still isn’t considered income.</p>
<p>I also fall under the income where I have no loans, just workstudy. I’m still a bit confused, as nearly everyone I’ve spoken to said that any and all scholarships awarded cut out of the financial aid rice gives. Could you please elaborate on your son’s situation?</p>
<p>^ that’s what their website and their FA officers say too. See the link someone else gave above.</p>
<p>Yea, it seems pretty clear that outside scholarships will cut out from aid, not sure what BrooklyninOh’s son situation is though. Ah well, at least if I get 2500, I wont have to do work study.</p>
<p>My son’s situation is typical of someone eligible for a Pell grant. He receives that, a small Rice scholarship, Rice grants and work study. When he was a freshman, he received some money in outside scholarships. It didn’t change his FA. The checks that were made out to Rice were submitted directly and applied to the amount we owed. The checks made out to him were reported through whatever the required forms were and we used it towards the balance we owed. </p>
<p>As far as work study goes, it is just the Fed govt paying Rice to employ you. It makes you more attractive as an employee. You still receive a regular paycheck. It doesn’t go toward your Rice bill. You also have to claim it as income just like a regular paycheck. You will have lots of opportunities to work on campus even if you do not have work study. I encourage you to apply to referee intramural sports. My son has done it for 3 years and they are always looking for more help. You don’t need any experience. They will train you. 
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<p>In addition to a son at Rice, I also have a freshman son at our large public state school here. The freshman scholarships worked the same way there. I know it isn’t that way at every school and I stressed about it too the first time around. That’s why I’m jabbering on and on about our experiences.</p>
<p>^ Please clarify in very simple English. When I emailed FA, I was told that outside scholarships would reduce the school grants (as would the Rice National Merit award), dollar for dollar, which is very clearly IMO what their website says. My son is about to reject a scholarship based on it not providing him any financial benefit as he has no loans and no work study.</p>
<p>So… are you saying that for example your S had no loans and no work study and you had an EFC of let’s say 5k. Your S received an outside scholarship of 3k… are you saying that your EFC was now 2k? Or that your EFC remained at 5k?</p>
<p>Thanks.</p>
<p>Scholarship is merit-based while grant is need-based. I would not recommend my children to reject any scholarship because they earn it. </p>
<p>The EFC will never be decreased regardless of any amount of institutional or outside scholarship, because the Federal Government believes the parents are responsible for their childrens education. The EFC varies depending on each familys financial situation (calculated via FAFSA).</p>
<p>So, if a student has Rice grant only or Rice merit scholarship (excluding the Rice $1,000 per year National Merit Scholarship) + Rice grant (no Work Study and loan), the Rice $1,000 per year National Merit Scholarship or the $2,500 (one-time) scholarship from National Merit Scholarship or any outside scholarships WILL NOT change a students financial aid package. However, if somewhere down the road a familys financial situation improves (i.e. a giant end of the year bonus, winning a lotto jackpot, etc.), a students grant will be decreased or taken away, but not the merit-based scholarship. </p>
<p>If a student has Rice merit scholarship, Rice grant and Work Study (say $2,500 per year), the Rice $1,000 per year National Merit Scholarship comes in very handy, because it is treated as outside scholarship and will decrease the Work Study of $2,500 per year to $1,500 per year. And the one-time $2,500 National Merit Scholarship can take care of a students first years Work Study. </p>
<p>If a student has lots of outside scholarship, say $5,000 or $10,000 and has no Work Study, I believe the student can use the money toward summer classes at Rice or future summer study abroad program. At least, this is what I get from talking to a Rice financial aid officer.</p>
<p>^ I will have to ask about the summer classes or study abroad.</p>
<p>As your mail basically says… the scholarship money will be used to replace the school grant money, so for us, there is no benefit. I am also not sure if taxes will have to be paid on the scholarship(s) as income, which then would hurt us. The scholarships right now are only first year, so have no recurring benefit and can just be turned back to give someone else the money.</p>
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<p>So this is the information I have gotten every time I have asked if there is any way to use outside scholarships, or even Rice’s own National Merit scholarship.</p>
<p>It is unfortunate that they are not willing to work with us. I can’t complain about the FA package, but it is unfortunate that my S has worked so hard and has been rewarded and now he has to just give away that money and will still have to struggle to have money for books, etc.</p>
<p>^Can you apply for as subsidized Stafford to cover the EFC?</p>
<p>^I don’t know. The EFC is basically just the cost of books and “personal expenses”. Everything else is basically covered. Those things are not one lump sum (well, other than books), so the expenses are probably coverable, it’s just the issue of coming up with the lump sum check for taxes. (Sorry… the tax issue is another thread I’m working on that we’ll have to address, but isn’t relevant to this thread.)</p>
<p>This situation also leaves S is a quandry about applying for subsequent year scholarships.</p>
<p>And following up with the suggestion that outside scholarships could be used for summer school… this is the reply I received:</p>
<p>Scholarships are applied to student accounts in the Fall and Spring semesters and may not be used in the Summer. Student loans are the financial aid resource available for summer school assistance.</p>
<p>Anyone know what the policy is on applying outside scholarships to institutional unsubsidized loan offers?</p>
<p>I believe it is possible. I would recommend emailing Rice Financial aid to check though</p>